Cash
flow seems to be king, especially for resource investors of late. And with so
many juniors struggling just to survive Anfield
Resources (TSXV: ARY), and its
expectations for increased cash flow in the near future, seems to have caught
the attention of some investors recently, sending its stock soaring 160% so far
in 2014 to its current price of $0.65 a share.
Anfield’s
assets include uranium mining claims and state leases in southeastern Utah and
Arizona totalling over 11,000 acres, the Binghampton Copper Queen (BCQ) project
in Arizona with two past-producing mines on the property, the North Star Copper
Project also in Arizona, consisting of 200 mining claims covering approximately
4,000 acres, and its producing Aura mine in Chile.
“Our
strategy is to target near-term production and cash-flow generation in order to
distinguish ourselves from other small resource companies,” said Anfield
Resources CEO Corey Dias, in an interview with SmallCapPower.com.
Anfield
is already mining copper ore on a small scale in Chile, which essentially
involves blasting the ore, separating the ore from the rock and shipping it in
trucks to the Enami Processing facility. Enami is a government mining agency
whose sole mandate is to facilitate the operations of small and medium-sized
mining companies by purchasing ore from these entities. Enami’s processing
facility near Aura is currently running at just 60% capacity utilization, which
gives Anfield the opportunity to increase its output if warranted.
Mr.
Dias explained that, based on its eight land concessions at Aura, Anfield would
be allowed to sell as much as 32,000 tonnes of ore per month to Enami in a Blue-Sky
scenario. Using a relatively conservative $75 per tonne tariff, that could
potentially translate into as much as $2.4 million per month of revenue for
Anfield should the company be able to maximize its ore-selling limitation of
4,000 tons per month imposed by Enami. He added that its Aura operation is
currently breaking even on a cash-flow basis.
With
its uranium assets that include over 50 historically-producing mines, Anfield
is hoping to replicate the cash-flow generation opportunity of its Chile
operations during the next couple of years. The company anticipates bringing
its uranium properties into production by the end of 2015, which it believes is
possible given that it is targeting assets such as past-producing mines with
underground workings. Unlike a true producer, though, Anfield will be
collecting the ore and shipping it to an established mill, which will likely be
Energy Fuels’ White Mesa Mill. Thus, Anfield won’t have the capex expense or
mill permitting issues to deal with and it has already applied for
authorization to begin mining.
On
February 13, 2014, Anfield announced the signing of a purchase agreement, which
included a right of first refusal with regard to the purchase of 100% of mine
production, with Blue Zen Memorial Parks (BZM) to jointly advance Anfield’s
Binghampton Copper Queen (BCQ) copper project in Arizona. The agreement
includes an initial $2 million project-level investment by BZM to delineate a
copper resource estimate at BCQ. BZM’s principal shareholder, Mr. Jiang
Jiaping, is the founder and CEO of China-based Jiangsu TianDiLong Land Resource
Technology Co. Ltd., which produces copper cathodes, rods and wires and has
annual sales of $1.8 billion.
Anfield
has recently raised about $2 million in equity financing, so Mr. Dias doesn’t
expect to have to go back to the market anytime soon to raise more funds. And with
just 18 million shares outstanding, it doesn’t take a lot of buyers to move its
stock price higher.
To learn more about Anfield Resources, please visit the
company’s website.
